-In the Above Figure, If We Begin at and the Fed

question 84

Multiple Choice

-In the above figure, if we begin at and the Fed sells bonds,

• A) the price of bonds falls, and the interest rate rises.
• B) the price of bonds falls, and so does the interest rate.
• C) the price of bonds rises, and so does the interest rate.
• D) the price of bonds rises, and the interest rate falls.

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